Broadcasters Seek an Aereo 'Plan B'

The nation's largest television broadcasters are considering contingency plans in case they lose a high-stakes Supreme Court battle against online video startup Aereo.

The most radical of the contingency plans is the recent suggestion from CBS Chief Executive Leslie Moonves that the company could offer its own Internet service if Aereo wins. Moonves hasn't provided details, but a person familiar with the situation said CBS has the ability to launch a service that would stream its programming over the Web simultaneous with its television broadcasts. CBS would charge a few dollars a month and show ads, the person said. Such a service would also likely offer on-demand programming. It could include Showtime, the CBS-owned premium cable channel, which would increase the subscription fee, the person said. CBS would use technology company Syncbak, in which it owns a minority stake, to power streaming of local TV stations' signals over the Web, the person said. There would be challenges for CBS in rolling out an online subscription service, including pricing it at a level that can compete with Aereo's $8-a -month fee and dealing with new billing and customer service costs. Ad rates online would likely be much lower than for TV.

One potential issue: When broadcasters license rights from sports leagues, the deals normally assume the outlet will be an over-the-air TV network. Leagues may worry that audiences for their games could shrink on TV as Web audiences grow, reducing the value of those TV rights in future deals. Broadcasters point out that some major leagues have filed court briefs supporting their legal case.